Jim Cramer says Microsoft’s unbundling of Teams and Office is good news for this portfolio stock
Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Tuesday’s key moments. U.S. stocks declined Tuesday as Wall Street extended its poor start to the second quarter. This is a big shift from the market’s stellar first quarter . The S & P 500 jumped 10% over the first three months, notching its best start to the year since 2019. “We should all expect sell-offs after a bountiful period that started in October,” Jim Cramer said. Although the S & P 500 Short Range Oscillator indicates that the market is no longer overbought, the pressure from bond yields, higher oil prices and downbeat earnings are weighing on the stock market. Overall, the Club’s being patient right now after making two trims Monday. We’re looking for bargain buying opportunities when appropriate, but are willing to be patient. Citigroup boosted its Eli Lilly price target to $895 from $675 apiece, implying nearly 18% upside from Monday’s closing level. Analysts at the firm raised sales estimates on Eli Lilly’s not-yet-approved oral GLP-1 drug, orforglipron. The Club has long said Eli Lilly’s GLP-1 drug franchise, which includes Zepbound for obesity and Mounjaro for type-2 diabetes, has huge growth prospects. “Citi is finally getting a little religion there,” Jim said. While Eli Lilly shares are lower over the past month, the stock is still up around 30% year to date. Club holding Microsoft announced Monday that it would sell its Teams messaging and video app separately from its Office bundle across the world amid scrutiny from European regulators. The move is “unfortunately bad news for Microsoft,” Jim said. But it is “really good for Salesforce,” which owns Teams rival Slack, Jim said. In 2020, before being acquired by Club-owned Salesforce , Slack accused Microsoft of anticompetitive behavior in a complaint to European regulators. (Jim Cramer’s Charitable Trust is long MSFT, CRM, LLY. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Get Best News and Web Services here
